The Rise & Fall Of Motorsports

From Nascar to Your Local Race Track Times Are Tough!

The current economic situation is causing everyone from Nascar to the local racer to re-think their 2009 race schedule.

Reports have it that Nascar Teams are having serious problems finding sponsors for their muti-millon dollar race budgets. Media sources report massive layoff's thru-out Nascar teams, in order to cling-on to precious needed funds to continue on in the high priced world of auto-racing.

Other measures taken by Nascar is they have banned testing by any Nascar team at any Nascar sanctioned track. With costs as high as $70,000 per testing session, this action is thought to save teams much needed revenue.

This does not stop testing on any non-nascar sanctioned track, but does put the teams with the least amount of testing revenue at a disadvantage, only teams with locked in sponsorship for the upcoming season will probably be able to take advantage of the opportunity to test at non-sanctioned tracks.

Teams from Nascar to the local circuit are even cutting their race schedule limiting the number of races they will participate in during the upcoming 2009 race season, which will start to impact the tracks, not having the normal amount race fees coming in will certainly have an some effect on tracks nationwide.

Other expected effects of our dwindling economy on tracks will be less fan attendence, where as a few years ago the price of a ticket, food and drink and occasional hat or t-shirt with your favorite driver on it may have not been an issue,now even the die hard race fan will have to consider if the price of the night out at the track will be worth it, while struggling to pay the bills etc..

What use to be a weekly or monthly visit to the track could soon be a yearly planned vacation, as less racer & fan attendence will most certainly cause tracks to raise prices just to keep operating or worse yet shut down completely.

With all the drastic cuts being made you have to wonder about the fate of the Nascar Developmental Teams such as Nascar's Nationwide Series and the Nascar Camping World West & East Series. These being the minor leagues of Nascar and where Nascar's top teams find their up and coming drivers, the demise of these series could well end the reign of Nascar and motorsports in general as we know it today.

As motorsports has gained in popularity since it conception with the rum runners of the good ole days, It will most certainly be tested in the next few seasons to see if the ever gaining interest in motorsports can weather the storm.

With sponsorship being the backbone of motorsports,no matter if you race at your local track on the weekend or at the Nascar level, "sponsorship is everything". The more sponsor's you have the less out of pocket expense's on your race budget and the more sponsorship the more opportunities for the racer,the team, the sport..

With cost up to and beyond $30 million to run the "Top Teams" for one season and some drivers commanding $10 mil. a year salaries you can easily see the need for all the help you can get. Money that use to flow freely in motorsports is now quickly drying up.

Nascar business models call for the sponsors to pay 75% of these cost,easily reaching $25 million ie; Sponsor for Dale Earnhardt's Nascar, Aflac Ins. reportedly will pay $30 millon for the advertising rights on the Earnhardt Nascar for the upcoming 2009 season. (Sounds like maybe all of us need to be in the insurance biz)

Not every nascar has the same kind of sponsorship deal. Some sponsors pay for "tip to tail" space on cars and have full control over which other companies are on the quarter panel and on the fenders and decklid, allowing them to pick and sell space to whom they desire, helping them cut the cost of their sponsorship. So I guess you could say even the sponsors are searching for sponsors.

Revenue can also come in the form of prize money and licensing, a top car owner can bring in up to 4 million year in prize money alone. Some top car owners can pocket this money as the the struggling teams will be forced to use every penny to continue on with lack of sponsorship.

Having the honor of filming w/ The Nascar Super Truck Series and other Pro Race Organizations in the 2008 season, I have personally seen the change lack of sponsorship along with job loss or slowdown, "basically the economy",has done to the local race circuit... With the cost of racing at all time highs, you better pray hard you don't put your vehicle in the wall as this could be the end of the season for you. One of my customers had this happen; with his vehicle totaled at the end of the 2007 season he had to rebuild his race truck in preperation for the 2008 season and after 2 crashes by midway thru the 2008 race season,his race budget had reached it's end even with minor sponsorships tires,paint and body etc the out of pocket cost was enough to end his 2008 season.. "See Video below for one of those crashes."

I also saw other teams running short race schedules and not testing as much if at all. Many of these teams are sponsored by construction co.'s and related companies and when the construction slowed down so did the teams racing and testing schedules. So as of right now the motorsports industry in is the same slump as the rest of the world, as motorsports rely on all the sponsor's that provide the services all of us use and are not using as much now.So once again sponsorship is everything. The more you have the better your chances of a full complete race season.

With massive layoffs with the top teams,lack of sponsorship,less racer and fan attendence what is in the future of motorsports?

Possible shortened seasons may be in our motorsports future along with less tracks nationwide to race that shortened season on. Loss of developmental series, loss of the ability to test your machine and driver.

Leading to the degragation of the sport as a whole, if drivers from the amateur to the pro ranks don't have the ability to refine their sport.

Many possiblities lie ahead and myself as well as 1000's of other motorsport fans can only hope for the best at this point. I have watched the Rise of Motorsports and never thought I'd live to see The Fall of Motorsports.

Onboardz.com